Whilst it is estimated that around 40% of the adult UK population has a Will, there are much fewer people that have prepared a Lasting Power of Attorney (LPA).

It is encouraging to see that the number of adults that prepare a Will is increasing but there is a strong argument that having an LPA in place is just as important, if not more so, than having a Will, to ensure that your wishes are followed.

We are living in an aging population where it is estimated that one in three people over 65 will develop dementia (Alzheimer’s Society).  However, accidents and illnesses can happen to any of us at any time and an LPA should not only be considered by the older generation. Every 90 seconds someone is admitted to hospital in the UK with an acquired brain injury (Headway).  Some of these people may no longer be able to make certain decisions for themselves following the brain injury. If they do not have an LPA in place, it will mean that their loved ones will have to make an application to the Court of Protection to be able to access bank accounts, to pay bills and manage the finances.

There are two types of LPA. The first is for your property and financial affairs. This allows your attorney to make decisions that affect you in relation to your financial arrangements, including your property, bank accounts, pensions and other financial assets. The second LPA is for health and welfare decisions.  This allows your attorney to make decisions such as the healthcare you are to receive, including whether you are to receive life sustaining treatment, or where you are to live, should you be unable to make these decisions yourself.

There is a reluctance amongst some to consider preparing an LPA and below are just some of the reasons why you should consider having one in place:

1. You can choose your attorney. If you are unable to make your own decisions and do not have an LPA then the Court of Protection may appoint someone that you may not have chosen.
2. An LPA for property and finances is flexible as it can be used whilst you have capacity or should you become incapable of managing your affairs.
3. You can name more than one attorney and also replacement attorneys if you wish.
4. You can include instructions and guidance to your attorneys in your LPAs.
5. Your attorneys can only make gifts from your assets on customary occasions and they must be proportionate to what you would give. Any sizeable gifts made by your attorneys must be approved by the court.
6. Having an LPA in place means that managing your affairs should be easier for your attorney. They will be able to access your money immediately after the LPA has been registered to begin to help you. An application to the Court of Protection, if you do not have an LPA in place, can be much more time consuming and potentially leave your loved ones in financial hardship in the meantime.

If you would like to talk to one of our specialist advisers, please call us on 0151 647 9381, request a callback at your convenience or message us your enquiry.